Consumer debt
Consumer debt The term consumer debt refers to past-due amounts, lent by a creditor to a consumer, where the individual has fallen behind with his regular payments and became a debtor. Such defaults are also known as individual debts and represent a monetary sum borrowed by a second party (consumer) from a first party (lender). Individual debt is a small fraction of the whole household debt section, along with mortgage defaults, and derives from consummation or usage, rather than from investment (like business debts).
Credit collection agency
Credit collection agency A credit collection agency, also known as “debt collection agency” operates according to different state and international laws. Such organisations supply creditors with ethical and compliant debt recovery services in return of a percentage payment, called “interest”. This commission fee sum can also be collected from the debtor. A debt collection agency interferes with the recovery process, when default profiles and late payments appear. Recovery agents use different methods and techniques to contact the debtor and restore the total debt amount.